Late this afternoon I met with key players in the District’s
healthcare delivery system to discuss the situation affecting Greater
Southeast Hospital and Hadley Memorial Hospital. Earlier today, the
parent company of both of these facilities filed for bankruptcy
protection so that they can reorganize under the provisions of Chapter
11 of the Bankruptcy Code.

Let me say first of all that I appreciate the ongoing level of
communication and dialogue that we have seen thus far. Over the past
week, I have had dozens of meetings and conversations regarding the
situation at Greater Southeast and I expect to be very much involved in
these discussions in the weeks ahead. I am pleased to learn that under
the leadership of Councilwoman Sandy Allen, a briefing for the Council
will take place tomorrow so that issues related to these developments
can be examined in greater detail.

As we work together to resolve these matters, it is my hope that the
District government can be helpful in any and every appropriate way
possible to sustain the viability of these two hospitals. Greater
Southeast and Hadley Memorial are important players in our healthcare
system. They are significant employers and play vital role in the local
economy. I want very much to see them continue to be in a position to
provide services to the community.

We understand that their current financial difficulties result from
problems with a financing company under contract with Doctors Community
Healthcare, Inc., and that this situation is impacting dozens of
hospitals across the country. I am hopeful that new arrangements can be
made that will allow the company to remain viable and to resume its
prior level of operation both here in the District and in other
locations.

Greater Southeast plays an important role in the District’s
Healthcare Alliance. They serve in a management capacity and also as a
provider. These roles are distinct and separate. It is important to note
that the Alliance is a broad initiative involving six area hospitals,
over 30 clinics and hundreds of individual healthcare providers. Now in
its second year of operation, the Alliance is a dynamic and highly
successful public healthcare program providing quality healthcare
services to over 25,000 District residents. I do not anticipate that the
problems with Greater Southeast and Hadley Memorial will have any impact
or reduction in service delivery to enrollees in the program. Our
Department of Health oversees the contract and is monitoring the
situation on a day-to-day basis to assure that we maintain patient
safety and quality of care.

As this situation evolves, please know that the District government
is taking a proactive and supportive role in helping sustain Greater
Southeast and Hadley Memorial hospitals through this difficult period.
In working with the Council and key players in our healthcare system, I
am committed to doing all we can to keep our hospitals in operation and
to continue the full delivery of healthcare services as provided for in
the contracts that govern the DC Healthcare Alliance. As developments
warrant, it is my intention to provide additional information to the
press and to the public.